Hell Broke loose when Demonetisation was announced, and till now majority spoken about every possible harm it would have created to the people, economy,industry, Regions, Businesses etc.,
But somehow,I am very convinced that it is a much needed boldest ever decision a government can take in a country which was ruined by all populist measures for last 5 decades.When ever i try putting forth my point i have been vehemently opposed by some of my friends that it was a disaster of highest order.
While i choose not to continue the discussion, i was waiting for the effects which people can start seeing which helps them in understanding my perspective!!When Raghuram Rajan(Whom i immensely respect) choose to Criticise this move, i was kinda heart broken and started questioning myself on whether i still believe that its the much needed move or a disaster!!!!
I idealize Lee Kuan Yew, and he is one leader whom I believe should be an all time example for how a great leader can be!!!He says“Whoever govern Singapore Must have the Iron in Him”
For that matter, i can never visualise him as a politician ever!!!All i could see is a man with enormous amount of conviction in making his motherland the greatest!!!
People across the world laughed when he banned use of Chewing Gum in Singapore!.But only few realised the reason behind it.He was very clear on his convictions and he is also very clear on he exercising his authorities to the fullest as long as he has been given the mandate in ruling his country!!!
India badly needs a leader who has that conviction to do things what the country needs and he should do that against all the oppositions!!
I Hope to See Narendra bhai, that leader as compared to all others he has all the advantages aligned towards he making it a reality!!
Lets come to the subject.POSITIVE impact of Demonetisation.
When NDA Came to Power,The Total Tax Payers in the country all Put together is Approx 3.8 Cr(includes Individuals and Businesses)In Financial Year 16 it become Approx 4.5 Cr and in This Financial Year 18 it become a whopping 7 Crore Tax Payers.
In Nutshell,The country got close to 3 Cr New Tax Payers in Last 2 Years.
what it means to me in my language is
(1)We have more Active Participants in the Income Tax Net who will become Paying Participants in coming years!!
(2)Our Dependency on Larger Corporates in terms of higher Tax Collections will go down as we have many smaller tax payers joining the system.
(3)Can expect better corporate Governance as e government Doesn’t need to budge anymore on them.
(4)Ability to incentivise right People as there is a Systemic Tracking Possible on Earnings Vs Spendings.
Also if we see the Direct Tax Receipts,Compared to last two Years where the Yearly Growth is around Approx 7%,this year it has Posted 15% Increase over last year!!!
In terms of Growth its 100%
- In Terms of Amount in FY 17 the collection is approx 10 Lakh Crores.
- When Income Level Improves,It results in Higher Tax Collection as More and More people are already on the Net.
- The Higher the Tax Collections are,The chances are high to have a lower Slab of taxes.
- It gives Ability to the government to Invest on Better Infra facilities without External Dependencies.
- With the Constant focus in Closing all loop holes and thru JAM(Jan Dhan,Aadhar and Mobile focused Payment Innovations)I sincerely hope and believe that in coming years we have all possibilities of becoming the country what we deserve!!!
Im not in support of any Political parties nor its Ideologies!!!I also don’t agree to all the actions of the government as i have my own share of disagreements on many actions in the recent past!!!but i feel its very important today to share all the positives in governance as almost all mediums have taken sides and not presenting the facts which people should know!!!
Views are strictly Personal!!!